Inept fuel importers lose licences

The government yesterday revoked licences of oil firms
which have failed to import the commodity, subjecting the country to
unnecessary shortages.

The government also disbanded and formulated afresh
Petroleum Importation Coordinator (PIC) board of directors on grounds that it
has also failed to discharge its responsibilities diligently.

The minister for Energy and Minerals, Prof Sospeter Muhongo, took the
steps yesterday, two weeks after the country started to experience shortages of
petroleum products, earlier blamed on faulty discharging facilities at the
Kurasini Oil Jet (KOJ).

Prof Muhongo said in Dar es Salaam yesterday that for
the past six months, the importers had failed to ensure they had imported
enough fuel for the country.

“Ewura (the Energy and Water Regulatory Authority) has been hesitant in
taking action against importers, therefore, we have made the task simple for
them,” he said.

He apologised to Tanzanians for enduring the shortage of
petroleum products in the country. “We have taken appropriate measures but we
can now assure the nation that we have enough fuel for domestic use,” he
declared.

The minister said, however, that the licences would be reinstated if
the companies manage to prove to the authorities that they were capable of
carrying out their mandate.

He said the new PIC board would start operations next Tuesday,
explaining that it would be composed of large oil importers, middle class
businessmen as well as small retailing companies.Ewura, Tanzania Revenue Authority (TRA), and
Tanzania Ports Authority (TPA) would also be represented in the board to be
chaired by a ministry official.

Meanwhile, the Energy and Water Utilities Regulatory Authority (Ewura)
has sanctioned the sale of 27.4 million litres of petrol, diesel and kerosene
in the local market that was originally meant for transit to neighbouring
countries.

Nine oil companies had requested the regulator to allow them to sell 21
million litres of Petrol, 5 million litres of diesel and 1.4 million litres of
kerosene in the local market.

Ewura Communications manager Titus Kaguo said the move would boost the current
oil stocks in the country.

“We have received and granted the applications. The Tanzania Revenue
Authority (TRA) has ordered the companies to fully pay tax for the fuel before
it’s diverted into the local market,” said Mr Kaguo.

According to Mr Kaguo, the oil shortage experienced in the country was
not man-made but rather caused by inefficiency in the offloading of fuel
tankers at the port.

“This problem is exacerbated by a poor infrastructure. We have oil that
is not serving us because of inefficiency during offloading,” said Mr Kaguo,
adding that the problem is mainly compounded by lack of oil reserves.

He noted that currently the country has (besides the localized stock) a
stock of 35.8 million litres of diesel which could serve Tanzania for 10 days,
16.2 million litres of Petrol (9 days), kerosene 0.6 million litres (3 days)
and Jet A fuel (25 days).

Currently, oil consumption in Tanzania stands at 1.7 million litres of
petrol, 3.54 million of diesel and 200,000 litres of Kerosene.

Meanwhile, the fuel shortage facing various parts of the country has
drawn Parliament’s attention, with lawmakers demanding the government’s
explanation. Many MPs supported an urgent private motion presented by Mwibara
MP Kangi Lugola who asked the House to suspend other businesses to discuss the
fuel crisis.

Mr Lugola expressed worry that despite passing the bulk system of
procuring fuel as a permanent solution to the problem in the last meeting, the
shortage has continued to persist.

“I have suspicions that there is sabotage in the issue of fuel
procurement… it can’t always be this way,” he said.

Ubungo MP John Mnyika wanted to know the fate of the Parliament
Committee on Energy and Minerals, which was dissolved over corruption
allegations. He argued that the absence of the committee had denied the country
a chance to address the fuel problem.

Source: The Citizen,http://www.thecitizen.co.tz, reported by Nora Damian in Dar es Salaam, additional
reporting by Alex Bitekeye in Dar and Bernard Lugongo in Dodoma